Stark company has the following adjusted accounts and normal balances at its December 31 year-end. Use the adjusted trial balance accounts and balances at its December 31 year-end for Stark Company to prepare an adjusted trial balance. **Financial Statement Components**Below is a list of financial statement components and their respective values. These items are typically used in the preparation of financial statements such as the balance sheet and the income statement.- **Liabilities and Equity:** - Notes payable: $27,000 - Accounts payable: $9,500 - Wages payable: $2,000 - Interest payable: $740 - Unearned revenue: $1,600 - Stark, Capital: $120,800 - Stark, Withdrawals: $11,000- **Assets:** - Cash: $42,000 - Prepaid insurance: $4,100 - Accounts receivable: $7,200 - Buildings: $200,000 - Supplies: $1,600- **Expenses:** - Interest expense: $820 - Utilities expense: $2,900 - Wages expense: $9,100 - Insurance expense: $3,400 - Supplies expense: $520 - Depreciation expense—Buildings: $10,000- **Revenue:** - Services revenue: $100,000- **Contra Asset Account:** - Accumulated depreciation—Buildings: $31,000These figures provide an overview of a company's financial position, showing its liabilities, assets, equity, expenses, and revenue streams. It also includes contra accounts like depreciation, which accounts for the reduction in value of buildings over time.

Trial balance is the statement prepared by the entity to check whether the debits in the books are…

Answered: Notes payable Prepaid insurance…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stark company has the following adjusted accounts and normal balances at its December 31 year-end. Use the adjusted trial balance accounts and balances at its December 31 year-end for Stark Company to prepare an adjusted trial balance.

**Financial Statement Components**

Below is a list of financial statement components and their respective values. These items are typically used in the preparation of financial statements such as the balance sheet and the income statement.

- **Liabilities and Equity:**
- Notes payable: $27,000
- Accounts payable: $9,500
- Wages payable: $2,000
- Interest payable: $740
- Unearned revenue: $1,600
- Stark, Capital: $120,800
- Stark, Withdrawals: $11,000

- **Assets:**
- Cash: $42,000
- Prepaid insurance: $4,100
- Accounts receivable: $7,200
- Buildings: $200,000
- Supplies: $1,600

- **Expenses:**
- Interest expense: $820
- Utilities expense: $2,900
- Wages expense: $9,100
- Insurance expense: $3,400
- Supplies expense: $520
- Depreciation expense—Buildings: $10,000

- **Revenue:**
- Services revenue: $100,000

- **Contra Asset Account:**
- Accumulated depreciation—Buildings: $31,000

These figures provide an overview of a company's financial position, showing its liabilities, assets, equity, expenses, and revenue streams. It also includes contra accounts like depreciation, which accounts for the reduction in value of buildings over time.

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Can you the adjusted accounts for Stark Company to prepare the income statement and ( statement of owner's equity for the year ended December 31 and balance sheet at December 31. The Stark, Capital account balance was $120,800 on December 31 of the prior year, and there were no owner investments in the current year.

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